Question

MSME classification depends on which of the following?

• A. Investment only B
• B. Turnover only
• C. Either investment OR turnover, whichever is higher
• D. Both investment AND turnover simultaneously

Answer 1

Answer:

C. Either investment OR turnover, whichever is higher

MSME classification uses either investment or turnover, whichever is higher. For example, if a company invests ₹12 Cr but has turnover ₹80 Cr, the higher value is considered for classification. This allows proper categorization under Micro, Small, or Medium Enterprise.